Countries/Regions

Argentina's collapse has meant huge losses for foreign investors, particularly the Spanish, who spent richly to acquire market share in the 1990s. Growing instability in Brazil and elsewhere is adding to the pain.

The multilateral bank that serves impoverished Andean economies received a warm reception for its long term bond issue from wary European investors.

Even if it hurts, Latin American companies recognize the need to look to the equity markets as a way to rebalance capital structures weighed dwon by debt and Brazil is leading the way. The challenge is to drum up investor interest.

A Sub-investment grade Mexican railroad company took advantage of an openeing in the US junk bond market to issue $180 million worth of 10-year paper.

There are small signs that Mexico's competition authorities are beginning to stand up to the rich and powerful bosses who have defied control for years. But the regulators have a hard battle ahead of them.

This would seem a good time for shrewd investors to go rummaging for deals in Argentina's corporate bargain basement, but risk still outweighs the promise of reward for all but the most audacious buyers.

Uncertainty over Brazil's presidential elections are buffeting the international financial markets and threatening the long-term viability of key reforms made under President Cardoso. Murillo de Aragao argues that if the current front-runner, Luiz Inacio Lula da Silva, wins in October he must resist the temptation of adopting unorthodox policies or risk plunging the country in to serious crisis. Interventionist economic measures would threaten foreign investment, economic stability and fiscal performance.

After several years of sinking billions of dollars into government-mandated expansion programs, Brazil's phone companies are finally ready to start increasing revenues and reducing debt.